Frontline (NYSE:FRO) Shares Gap Up – Still a Buy?

Shares of Frontline plc (NYSE:FRO) gapped up prior to trading on Monday . The stock had previously closed at $17.23, but opened at $18.00. Frontline shares last traded at $18.09, with a volume of 1,708,972 shares trading hands.

Analysts Set New Price Targets

FRO has been the subject of a number of research reports. Kepler Capital Markets lowered shares of Frontline from a “buy” rating to a “hold” rating and set a $15.83 target price for the company. in a report on Thursday, December 12th. Jefferies Financial Group lowered their price target on shares of Frontline from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Tuesday, December 17th. BTIG Research upgraded shares of Frontline from a “neutral” rating to a “buy” rating and set a $30.00 price objective for the company in a report on Monday, October 7th. Finally, Fearnley Fonds upgraded Frontline to a “strong-buy” rating in a report on Friday, September 27th. One research analyst has rated the stock with a sell rating, two have given a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $24.03.

Frontline Price Performance

The stock has a market cap of $4.11 billion, a PE ratio of 7.54 and a beta of 0.01. The stock’s fifty day moving average is $16.37 and its 200-day moving average is $20.79. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.43 and a quick ratio of 1.43.

Frontline (NYSE:FRO) last posted its quarterly earnings results on Wednesday, November 27th. The shipping company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.05). Frontline had a net margin of 25.64% and a return on equity of 19.25%. During the same quarter in the previous year, the firm posted $0.36 earnings per share. As a group, equities analysts anticipate that Frontline plc will post 1.83 EPS for the current year.

Frontline Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Wednesday, December 11th were paid a dividend of $0.34 per share. The ex-dividend date of this dividend was Wednesday, December 11th. This represents a $1.36 annualized dividend and a yield of 7.36%. Frontline’s dividend payout ratio (DPR) is 55.51%.

Institutional Investors Weigh In On Frontline

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hsbc Holdings PLC increased its position in shares of Frontline by 7.7% during the 2nd quarter. Hsbc Holdings PLC now owns 1,932,842 shares of the shipping company’s stock worth $50,683,000 after purchasing an additional 138,011 shares during the last quarter. Forest Avenue Capital Management LP boosted its stake in Frontline by 12.7% during the second quarter. Forest Avenue Capital Management LP now owns 1,429,909 shares of the shipping company’s stock worth $36,834,000 after buying an additional 161,518 shares during the period. M&G PLC increased its position in shares of Frontline by 27.2% during the third quarter. M&G PLC now owns 1,110,763 shares of the shipping company’s stock valued at $25,164,000 after acquiring an additional 237,446 shares during the last quarter. Smead Capital Management Inc. raised its stake in shares of Frontline by 5.1% in the 3rd quarter. Smead Capital Management Inc. now owns 670,581 shares of the shipping company’s stock valued at $15,188,000 after acquiring an additional 32,531 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its holdings in shares of Frontline by 1,326.2% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 527,470 shares of the shipping company’s stock worth $12,053,000 after acquiring an additional 490,486 shares during the last quarter. Hedge funds and other institutional investors own 22.70% of the company’s stock.

Frontline Company Profile

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.